CIMS Plans To Take Over 5 GIC MF Schemes

Canbank Investment Management Services Ltd (CIMS) is all set to take over all the five mutual fund schemes - one growth and four equity funds-owned by GIC Mutual Fund.

Our bids were accepted by GIC Mutual Fund and we are expected to complete the takeover process before October 2004, NR Ramanujam, managing director of CIMS told the media here on Monday.

However, he refused to reveal the goodwill amount paid. He further added that the company is not averse to the idea of some more takeovers. We are not close to any such idea now, but we want to become a dominant player in the mutual fund market, Mr Ramanujam said.

The proposed takeover of the schemes would enable CIMS to add over 1.3 lakh investors to its base, Mr Ramanujam said. He was in Hyderabad to participate in a road show to launch a new, open-ended Nifty-linked equity scheme called Canindex.

Canindex will be made in equities in the Nifty in the same proportion and weightage, it represents in the Index. The scheme proposes to replicate returns commensurate with the index movement, he added. The offer will be kept open from Sept 17 to Sept 20.